Clean Transportation

This sector can use many different technologies such as biofuels, ethanol, cleaner diesel, hydrogen-based, LPG, natural gas. But the fastest growing one is hybrid gasoline electric vehicle where the Toyota Prius dominates. In this technology, the gasoline engine is the primary, while the electric engine acts as a secondary backup.

Plug-in hybrid is the next new technology where the primary engine is electric & the gasoline engine acts as a backup. The main advantage is that it has better mileage. The main players here are the big auto companies. However, smaller players from China have emerged, such as BYD (1211.HK) and Chery, the largest domestic car manufacturer.

Companies supplying batteries:

1. Johnson Control (JCI.US)
2. Altair Nanotech (ALTI.US)
3. Valence Tech (VLNC.US)
4. www.compactpower.com

Companies producing all electric cars:

1. Phoenix Motorcars
2. Tesla Motors
3. www.zapworld.com (ZAAP.US)


Other companies:

1. Fuel Systems Solutions Inc (Nasdaq: FSYS)

Fuel Systems Solutions manufactures and supplies alternative fuel components and systems to the transportation, industrial, and power generation industries on a global basis. Its components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, for use in internal combustion engines. The products improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air as required by the internal combustion engine.

The company operates in two business segments: IMPCO Operations (about 48% of total revenue) and BRC Operations (52%). IMPCO manufactures and sells products for use primarily in the industrial market through its U.S. facilities and products for use in the industrial and transportation markets through its foreign facilities in the Netherlands, Australia, and Japan. BRC manufactures and sells products for use primarily in the transportation market through its foreign facilities in Italy, Argentina, and Brazil.

The company's customers include some of the world's largest OEMs and engine manufacturers. The transportation market includes alternatively fueled automobiles, trucks, and buses.

The company uses a global network of several hundred distributors in 70 countries and 120 original equipment manufacturers (OEMs). In 2006 sales to distributors accounted for 64% of total sales and sales to OEMs accounted for 36% of total sales. In 2006 78% of the company's revenue was from sales outside the U.S. Data for 2007 is not yet available.

2. Quantum Fuel Systems (Nasdaq: QTWW)

Quantum Fuel Systems is a fully integrated alternative energy company and focuses on the development and production of advanced propulsion, energy storage technologies, and alternative fuel vehicles. In January 2008, Quantum disposed of its Tecstar Automotive Group and now operates only through the Fuel Systems division. This division designs, manufactures, and supplies packaged fuel and electric drive and battery system technologies for use in fuel cell, hybrid, plug-in hybrid, hydrogen, and other alternative fuel vehicles.

In August 2007, Quantum and its partner Fisker Coachbuild launched a new venture named Fisker Automotive, Inc. to produce premium plug-in hybrid automobiles. Initial deliveries of a four-door luxury sports sedan are anticipated to begin in December 2009.

In September 2007 General Motors decided to use Quantum as the supplier of the hydrogen storage vessel for their next generation of hydrogen storage systems being developed under their fuel cell vehicle program. The initial order for $4.2 million was received in November. This agreement makes GM a significant portion of Quantum's total sales. In fact, a major portion of all of Quantum's sales comes from a limited number of customers.

In January 2008, Quantum acquired 24.9% ownership in Advanced and Automotive Solar Systems (Asola), a solar module manufacturer in Germany. This acquisition is intended to secure a 10-year supply of solar cells to be used for the manufacture of solar modules for commercial, residential, and automotive applications in both Europe and the U.S.